US Economy Grows Most Since 2003... Economic Boom on the Horizon?

[Economy 52,951]

http://www.nytimes.c...rcent.html?_r=0

 

Most economy news i now post only in my daily economic thread. But this is big news so i thought it deserved its own thread!

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The reading for GDP growth for the US economy in the 3rd quarter of 2014 (July to September) came at a wooping 5% growth! thats the strongest growth in over a decade since 2003!

 

With 2nd quarter growth also surpassing 4%, and over 300,000 jobs created in one of the months, some wonder if we may be in for an economic boom

 

Consumer debt levels are much lower than they were before the recession, and depressed home construction for years now leaves room for that sector to pick up big time

 

The real test will be when abnormally low interest rates finally start to rise again. Only then we will see how resilient the economy truly is!

[True Blue 47]

NOT MS ECONOMY COMING FOR EVERBODYS WIG

 

[BoomKack 6,656]

BOOM CLAP! The sound of dem sales, the growth goes on and on and on and on on

[monsterdreams 1,529]

That's good

[bionic 50,111]

The power of Rebel Heart (available on iTunes now)

 

 

 

 

 

@Economy, do you think the interest rates will rise?

[Americano 31,061]

The US slaying

[Luc 4,776]

That's amazing. I just don't trust it for some reason. How can the US economy grow so much while the European and Japanese economy are so ****ty?

[Economy 52,951]

That's amazing. I just don't trust it for some reason. How can the US economy grow so much while the European and Japanese economy are so ****ty?

The US problems that caused the recession were economic imbalances that fixed themselves

 

The US boom from 2003-2006 resulted in over-valued real estate, over-construction, too much consumer debt, over-production of cars etc

 

The recession made consumers more cautiois and so they deleveraged debt so they are in better financial position to spend again, as the population kept growing but construction slowed the over-supply of homes imbalances was corrected and the auto industry is humming again as those overly produced cars have aged

 

Europe on the other hand has debt overhang problem at the soveregn level and that cant fix itself through cycles. The EU has to actually deal with it and fight it

 

Also the US had the bonus of an energy boom cutting the trade deficit and creating jobs which Europe did not

 

And lets also not forget that the US was less afraid to raise spending to stimulate economy and did QE while Europe did austerity

[Americano 31,061]

That's amazing. I just don't trust it for some reason. How can the US economy grow so much while the European and Japanese economy are so ****ty?

 

We aren't socialist and backwards like Europe/Japan 

 

Free market, do-it-on-your-own and not do-it-with-government-handouts

 

America conservatism  Gonna keep booming with a Republican Congress

 

[Americano 31,061]

The US problems that caused the recession were economic imbalances that fixed themselves

 

The US boom from 2003-2006 resulted in over-valued real estate, over-construction, too much consumer debt, over-production of cars etc

 

The recession made consumers more cautiois and so they deleveraged debt so they are in better financial position to spend again, as the population kept growing but construction slowed the over-supply of homes imbalances was corrected and the auto industry is humming again as those overly produced cars have aged

 

Europe on the other hand has debt overhang problem at the soveregn level and that cant fix itself through cycles. The EU has to actually deal with it and fight it

 

Also the US had the bonus of an energy boom cutting the trade deficit and creating jobs which Europe did not

 

And lets also not forget that the US was less afraid to raise spending to stimulate economy and did QE while Europe did austerity

 

Last part is very true.

 

While European politicians gutted their budgets and argued, the US spent trillions on economic stimulus and pro-growth programs. We began cutting spending later when the economy gained ground, with our deficit (not debt) now going to be a smaller % of GDP when compared to countries even like China.

 

You grow the economy and then cut the deficit. Europe cut the deficit before growing the economy.

[Jed 7,716]

Hmmm do you hear that noise? It's Fox news trying to find a way to ignore the fact that this happened while Obama was president.

[Luc 4,776]

We aren't socialist and backwards like Europe/Japan 

 

Free market, do-it-on-your-own and not do-it-with-government-handouts

 

America conservatism  Gonna keep booming with a Republican Congress

 

Good luck with your annual 500 billion $ defense spending, my country is happy with its 500 million € spent and have fun with your backwards society and huge lower class too. My country is happy with its legal softd--gs policy (since the 70's), gay marriage (since 2000), no death penalty (since 1945, when the top 10 of the nazi party were given death penalty), constitutional anti-discrimination law (race/gender/s-xuality/etc) and its great education.

[Economy 52,951]

Last part is very true.

 

While European politicians gutted their budgets and argued, the US spent trillions on economic stimulus and pro-growth programs. We began cutting spending later when the economy gained ground, with our deficit (not debt) now going to be a smaller % of GDP when compared to countries even like China.

 

You grow the economy and then cut the deficit. Europe cut the deficit before growing the economy.

You have to remember tho that the US had room to spend. Europes crises on the other hand wasnt a macro-economic crisis like the US... the main component of the Eurozone crisis was sovereign debt which was extremely high and the credit market was starting to become unstable

 

For instance in Greece Government debt interest rates for a time surpassed 16% because investors felt like the risk of them defaulting was very high

 

Europe had no choice but to cut spending to reduce deficits immediately because high soverein debt was much of the essance of the crisis to begin with which wasnt the case in the US

 

This stuff takes time and pain to deal with. The problems the US had on the other hand was large bubbles because of an unsustainable boom caused by bad lending practices. These were issues that were bound to go away eventually by themselves because the market can correct stuff like this on its own

 

Europe had different problems and circumstances than the US. And Europes problems were harder to deal with. You have to keep that in mind

Hmmm do you hear that noise? It's Fox news trying to find a way to ignore the fact that this happened while Obama was president.

if u knew even 1 bit about macro economics ud know the main reasons the economy is now booming has to do with the imbalances that were corrected during the recession. its cyclical

 

The recession was very severe, most imbalances have finally been corrected, so now the economy is in strong footing to go forward and recover properly

 

It would of happened regardless of who was President. U cant give all this credit to him. The Federal Reserve (Americas Central Bank) did more to fight for the economy than Obama tbh

[Jed 7,716]

if u knew even 1 bit about macro economics ud know the main reasons the economy is now booming has to do with the imbalances that were corrected during the recession. its cyclical

 

The recession was very severe, most imbalances have finally been corrected, so now the economy is in strong footing to go forward and recover properly

 

It would of happened regardless of who was President. U cant give all this credit to him. The Federal Reserve (Americas Central Bank) did more to fight for the economy than Obama tbh

Did I give him all the credit? I reread my post four times and I don't see myself saying that. My point was that conservatives go out of their way to say "Obama Obama Obama" and then where there is one bit of good news they are radio silent.

 

By the way you're a very pretentious person for someone who still writes "U" instead of "you." 

[Economy 52,951]

Did I give him all the credit? I reread my post four times and I don't see myself saying that. My point was that conservatives go out of their way to say "Obama Obama Obama" and then where there is one bit of good news they are radio silent.

 

By the way you're a very pretentious person for someone who still writes "U" instead of "you." 

well these stats just came out... they havent had time to show being vocal or quite

 

i just know the things they criticize Obama for are usually warranted in my opinion

 

And u didnt give Obama all the credit no. But you basically implied that it was something of major significance that Obama was in office when in fact like 95% of the recovery has absolutely nothing to do with anything Obama did

 

Obama often had other priorities over the economy. He may claim that it was a priority but whenever it was the economy vs something else, the economy always took a back seat to whatever other issue was at stake. And the ideas he did have like raising minimum wage (which i actually agree with btw) he didnt get to pass through yet cause congress is divided.

 

Some of the stuff was his fault and some wasnt. Some can even be blamed on Republicans (i favor republicans over democrats but it doesnt mean i agree with them on every single thing).

 

But regardless of whos fault was what... the economic imbalances corrected themselves, and the Federal Reserve fought for the economy while the Government did almost nothing most of the time

 

Investors now pay more attention to Janet Yellen (chairwoman of Federal Reserve) than they do Obama

 

Im just saying for the most part, his impact on the economy has been very slim, yet everybody likes to give him credit